Senate tax proposal opens divide in clean energy

Plus: Why Middle East oil crises aren’t what they used to be

In today’s edition:

— Clean energy winners and losers in Senate tax proposal

— Why Israel’s bombing of Iran hasn’t phased oil

— The sinister connection between authoritarianism and climate change

— A new plan to use public money to back renewable energy loans

— Arctic region provides $281 billion a year in economic value, report says

Flash flooding in northern West Virginia over the weekend left at least six dead. Above, members of the National Guard help with flood recovery efforts near Tridelphia, W. Va. on Monday. Photo: National Guard/Edwin L. Wriston.

Behind the frantic maneuvering on Capitol Hill on the future of renewable energy tax credits and subsidies this week, a clear divide in green preferences is opening up as the new tax bill takes shape.

Solar stocks were crushed Tuesday after the first Senate version of the bill upheld most of the House’s proposed cuts to solar and wind subsidies. Shares of Enphase ENPH 0.00%↑ and First Solar FSLR 0.00%↑ were both down more than 15% while shares of residential solar companies such as Sunrun RUN 0.00%↑ and SolarEdge SEDG 0.00%↑ were down 30% to 40%, as the Senate plan would cut credits for solar leasing.

But the Senate plan largely left credits for nuclear, geothermal, battery, and hydro businesses intact, at least through 2033. Each of these areas are longer-term projects with little ability to provide energy at scale shortly, such as solar and wind.

The Trump administration has demonstrated a preference for nuclear and other energy sources that could operate continuously. It’s likely the Senate seized on this to try to preserve as much green energy investment as possible. Total savings from removing all green energy benefits is estimated at about $40 billion, which would go toward preserving Trump’s tax cuts.

We’re still a long way from a final bill, so such price movements right now are a bit rash, though that is the stock market. It is becoming increasingly clear though who the have and have nots are going to be in this new world of energy security.

Don’t forget to contact me directly if you have suggestions or ideas dcallaway@callawayclimateinsights.com.

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Much of Iran’s oil assets are in the Khuzestan desert, where Iran borders Iraq. Photo: youngrobv/flickr.

Middle East oil crises not what they used to be